Bitcoin is at a very interesting juncture. It seems that the constant buying pressure from the Spot Bitcoin ETFs is keeping the price buoyant. Will gravity finally take over, or could we see more upside?
$BTC is the ultimate attraction
It can certainly be argued that the persistent buying of $BTC by institutions via the Spot Bitcoin ETFs is helping to drain an already scarce supply. Bitcoin’s role as the only asset outside of the mayhem that is our monetary system, also makes it extremely attractive.
Source: Coingecko/Trading View
In the shorter time frame, $BTC is currently inside an ascending triangle (a bullish pattern) bounded by the up trend line, and the resistance at $52,300. The negative here is that a lower high has been made, although breaking above the resistance can annul this.
Short squeeze?
Another possible negative waiting above is a pile of shorts. According to the Coinglass Liquidation Heatmap, $125 million in shorts can be liquidated at $52,650, and above, at $53,000, a further $150 million can be liquidated should the price reach this level.
This does rather help to lend a short term bullish bias to the price reaching $53,000, although this could also be a level at which price could start to make a correction.
Source: Coingecko/Trading View
Key resistance
Zooming right out in the weekly time frame, it can be seen that $BTC has reached this all-important level at strong resistance. The weekly close will be crucial for getting an insight into whether the price has consolidated above, meaning a continuation of the trend, or whether a far more telling rejection takes place, which would likely send the price into a corrective phase.
For those holding $BTC for the rest of this cycle, and perhaps beyond, this is all just minor blips along the way. Bitcoin has the potential to rise against every other asset class and so looks like a fantastic opportunity for long term saving.
For traders, there is the headache of not knowing if $BTC will continue to maintain its trend. The end of this week could provide a clearer picture of what lies ahead for the alpha cryptocurrency.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
